ERC asks 25 electric co-ops on pass-through fuel costs

By Alena Mae S. Flores – May 31, 2023, 9:35 pm
from manilastandard.net

The Energy Regulatory Commission said Wednesday it issued 33 show cause orders directing 25 electric cooperatives and three private distribution utilities to explain why they should not be penalized for failure to provide information on the pass-through fuel costs charged to customers.

It noted an ongoing fuel audit that aims to verify the accuracy of fuel charges imposed on electricity consumers under the power supply agreements. The regulator said the SCOs were issued against the distribution utilities over their failure to provide the necessary information within the prescribed timelines set by ERC regulations, including Resolution No. 16, Series of 2009, Resolution 24, Series of 2011 and the respective ERC approvals of the PSAs.

It said the submission of reports related to fuel charges is a condition for the grant of authority to charge generation rates under their PSAs. The commission said the DUs’ non-compliance with reportorial requirements undermines their primary obligation to procure energy supply for its captive consumers in the least cost manner.

“The DUs in question have been directed to provide verified explanations to the ERC or face potential administrative penalties,” ERC said.